Cancer is one of the deadliest health conditions that can hit you. It not only breaks you and the people around you from an emotional point of view but also financially. While you can have your friends and family rally around you and help you fight the disease, you also need to ensure that you are financially prepared to fight the disease. We will have a look at some of the reasons why you must purchase a cancer insurance policy.
- Wide coverage against different types of cancer: There are cancer insurance plans which provide coverage against various types of cancer at affordable prices. However, there are certain types of cancer such as skin cancer for which coverage may not be provided. Thus, you must always read the policy document to be aware of the types of cancer for which coverage is provided.
- It helps you take care of the high cost of treatment: The cost of the treatment of cancer can be expensive. Due to medical inflation, it is expected that the cost of the treatment of cancer will only surge in times to come. Hence, it becomes extremely important to purchase a cancer insurance plan so that you can ensure that you do not have to worry about the expenses that you will incur while getting treated for cancer.
- Income benefit: On being diagnosed with cancer, you may lose your ability to work due to which you may find it difficult to meet the financial needs of your family. The treatment of cancer can go on for a long period of time due to which you may not be able to work. During the period when you are not working, your insurance plan may help you meet the financial expenses as it provides a certain percentage of your sum assured which acts a regular stream of income and helps the member of your family meet their day-to-day needs.
- Lump-sum payout: Depending on the stages of cancer, the insurance company pays you a percentage of your sum assured as a lump-sum amount which helps you take care of the expenses related to the treatment of cancer. In this manner, you also get to save money as your policy takes care of the cost of the treatment regardless of the stage of cancer you are getting treated for.
- Waiver of premiums: On purchasing a cancer insurance plan, you can also avail certain types of add-on covers which enhance your policy. Out of the many options that you can choose from, you can go for the Waiver of Premiums rider. Under this rider, your future premiums are waived off in case you are diagnosed with cancer or if you meet with your death.
- Increase in cover: The cost of the treatment of cancer can be expensive in nature. Hence, there are cancer insurance plans which increase your cover depending on the stage of cancer you are diagnosed with, allowing you to keep pace with the ever-increasing cost.
- Medical history: If your family has a medical history of suffering from cancer then it is important that you purchase a cancer insurance plan. If you have members in your family who have suffered from cancer and have shelled out an exorbitant sum of money for their treatment, then it is important that you do purchase a cancer insurance plan as you are at risk of being diagnosed with cancer too. However, it is important to note that insurance companies may not provide you coverage if you suffer from cancer as a pre-existing condition.
- Tax benefits: Just like any health insurance plans, you also get to enjoy tax deductions of up to Rs.25,000 under Section 80D of the Income Tax Act, 1961. If you are a senior citizen, then you may enjoy higher tax benefits. Hence, purchasing a cancer insurance plan would allow you to enjoy tax exemptions.
These are some of the reasons why you must purchase a cancer insurance plan for yourself. It is important that you properly compare various plans before purchasing a cancer insurance plan. It is also important that you read the policy document and be aware of the exclusions and the inclusions under it before signing the policy document. Cancer is a deadly disease and one of the ways you can be prepared to fight it is by purchasing a suitable cancer insurance plan for yourself.
Financial Analyst at farmer’s insurance with over 25 years on experience in the financial industry